Chapter 18 The Monetary
of Social Credit



From the preceding chapters, it may be posited that, to correct the economic system and to put production at the service of consumers, there is no need at all to change the form of production, which is quite effective. There is the need only to provide the consumers with the means of claiming what they want from production, as long as that production is capable of providing it.

To this end, Social Credit calls for a regulation of the monetary system to put money in keeping with the facts of production and to put this money at the service of consumers.

A certain quantity of money already reaches the consumer through wages and salaries for accomplished work, or through the sale of products on the market, or through the income derived from investments. But nothing ensures the consumers at all times of a sufficient global purchasing power to buy the globally offered production. Besides, the money must be removed from a tutelage which taxes it at its origin, and which imposes on it a term of duration, without any relation to the duration of the production capacity.

The monetary propositions formulated by Major Clifford Hugh Douglas, the Scottish engineer who conceived the Social Credit Doctrine, seem effective ways to correct the monetary system, without collisions, without disrupting the present methods of production, without suppressing the pursuit of profit which stimulates production, without the least harm to personal freedom, and without undue interference into economic activities by the State.

We can therefore summarize the monetary propositions of Social Credit:

1. The national control of money;

2. A national credit account, reflecting the country's real wealth at all times;

3. The issuance of any new necessary money for consumption, in two ways, complementing each other.

a) By a national dividend to each citizen, thus recognizing the right of each one to a common inheritance, a factor of production;

b) By an adjustment of prices to balance definitely the global purchasing power with the offered production, avoiding all inflation as well as all deflation.

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